Spot ethanol prices rallied at the New York Harbor and Argo hub near Chicago due to a supply shortage and robust demand for gasoline blending, sources said.

"I think people are short more than strong blending demand," commented a trade source this morning. "Prompt (supply) is tight, pushing (prices) up."

Spot ethanol at the New York Harbor for ethanol barge was talked in a $2.25 to $2.27 bid/ask spread, a sharp 19.5 cents increase from Tuesday. Ethanol at the Argo hub near Chicago gained 7.5 cents, talked at $1.95.